Język Polski
English
Published
:
2010-08-30
Use of Capital Market Financial Derivatives for Hedging Purposes - an Empirical Example
Agnieszka Piekarzewska
Abstract
The article presents basic definitions of financial derivatives and their functions on the capital market, with special emphasis on their hedging function, that is - minimization of portfolio risk. Next, it discusses derivatives traded on the Warsaw Stock Exchange, especially the most liquid one futures contract based on WIG20 index. The article includes a shortened analysis of hedging properties of this contract during economic slowdown and immense decrease of the capital market. Due to conducted analysis it has been proved that this instrument (contract) can be used for decreasing of portfolio risk even in difficult economic situation.(original abstract)Keywords:
Financial instruments, Derivatives, Hedging, Fixed-period contracts, Portfolio securities, Stock marketMost read articles by the same author(s)
- Agnieszka Piekarzewska, The Financial Derivatives in the Household Portfolio , Zeszyty Naukowe Wyższej Szkoły Bankowej w Poznaniu: Vol. 30 (2010)
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Piekarzewska, A. (2010). Use of Capital Market Financial Derivatives for Hedging Purposes - an Empirical Example. Zeszyty Naukowe Wyższej Szkoły Bankowej W Poznaniu, 29(29). Retrieved from https://journals.wsb.poznan.pl/index.php/znwsb/article/view/1585